CPHRM Exam Questions and Correct Answers

Risk Avoidance Ans: The practice of coming up with alternatives so that the risk in question is not realized., only risk treatment that reduces probablity to zero Risk Transfer Ans: Shifting the impact of a risk to a third party together with ownership of the response., but not the ultimate legal responsibilities Loss prevention Ans: Technique that reduces the likelihood of an event or frequency of event Risk Control Techniques and Treatments Ans: 1. Avoidance 2. Loss Prevention 3. Loss Reduction 4. Segregation -separation -duplication actual transfer of risk 6. Risk finance 7. Risk retention 8. Risk transfer Segregation of loss exposure Ans: Arranging and organizations activities so if a loss occurred it would not broadly affect the organization Loss Reduction Ans: Aimed at eliminating the potential consequences of a given the risk without totally accepting or avoiding risk example fire sprinklers Risk Finance Ans: All the ways of generating funds for paying all losses that a current Risk retention Ans: Assuming the potential losses associated with giving risk and making plans to cover any financial consequences of such losses Contractural transfer for risk control Ans: Directed at shifting the legal responsibility from one party to another example leasing propertyr Eight risk groups of ERM Ans: 1. Operational 2. Clinical/Patient Saf